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What is a Functional Organizational Structure?

What is a functional organizational structure?

A functional organizational structure is a form of business organization that is made up of several departments based on specific skills and areas of expertise. Examples of departments in a functional organization structure could be a human resources department, a marketing department, a sales department, a finance department etc.

This type of structure is very common, particularly among large corporations. Some of the many companies that use this type of structure include: 

  • Starbucks 
  • Amazon 
  • Apple